MILAN, Nov 19 (Reuters) - Two Italian private equity funds expect to conclude talks to invest in a holding company that indirectly controls Pirelli, people familiar with the situation said on Monday.
The funds, Investindustrial and Clessidra, would invest 40-60 million euros in Tronchetti Provera’s family holding MTP Sapa.
The financing would enable Pirelli Chairman Marco Tronchetti Provera to pay back debt, thereby keeping control of Pirelli, the world’s fifth-largest tyremaker with a market capitalization of 3.96 billion euros.
Pirelli chairman Marco Tronchetti Provera controls the tyremaker through a complex structure involving three interlocking holding companies - MTP Sapa, GPI, and the Milan-listed Camfin.
The accord calls for the creation of a new holding in which MTP Sapa has 70 percent and the funds have the remaining 30 percent stake.
Reporting by Stefano Rebaudo, editing Jennifer Clark